The Filecoin price has declined in the past five straight days even as other cryptocurrencies have made multi-month highs. The FIL price is trading at $63.22, which is about 22% below the highest level on October 9th. This drop has brought its total market capitalisation to more than $7.2 billion.
Filecoin Orbit event
The FIL price has struggled at a time when the network is holding its Filecoin Orbit event. This is its first event since the network launched its mainnet on October 15th last year. The event comes at a time when Filecoin has seen significant growth.
It has already inked deals with some of the biggest blockchain projects in the world like Hedera Hashgraph, Estuary, Dapper, and Polygon. At the same time, the network surpassed 12 exbibytes of global storage capacity
Filecoin Orbit is the first annual event for the platform. It will run throughout the week and feature talks by some of the best-known members in the blockchain community. Some of the speakers will be from Protocol Labs, Filecoin Foundation, Starling Lab, and Holon Innovations among others.
Historically, cryptocurrency prices tend to rally ahead of the event. This has not been the case for Filecoin, whose price has declined by more than 23% from its highest point this month.
Filecoin price prediction
In my last FIL price forecast, I predicted that the price would drop from about $85 to $60. This view was accurate since the price is now trading at $63.
The daily chart shows that the Filecoin price has struggled in the past few weeks. The price has crashed by more than 47% from its highest level since September. It has also crashed below the 25-day and 50-day moving averages. The coin has also formed a head and shoulders pattern, which is usually a bearish signal.
Therefore, there is a likelihood that the FIL price will continue the bearish trend as bears target the next key support at $50. On the flip side, a move above the right shoulder at $80 will invalidate this view.